Net sales during the second quarter of fiscal year 2013 increased 9% to
$790.1 million, compared to net sales of $725.1 million during the
second quarter of fiscal year 2012. Excluding the effect of foreign
currency, net sales increased 11% during the second quarter. U.S. net
sales increased 10% to $470.8 million during the second quarter, while
Europe net sales decreased 1% (increased 5% constant currency) to $193.9
million and International (primarily Canada, South America, Mexico and
the Pacific Rim) net sales increased 21% (22% constant currency) to
$125.4 million.

Special items (pre-tax) totaled $96.8 million during the second quarter,
including $74.2 million of non-cash amortization expense related to the
2007 Merger and $7.4 million of stock compensation expense. The
remaining $15.2 million of special items were primarily associated with
the Trauma Acquisition, certain legal charges and the Company’s ongoing
operational improvement program.

Reported operating income during the second quarter of fiscal year 2013
was $143.2 million, compared to operating income of $103.8 million
during the second quarter of fiscal year 2012. Excluding special items,
adjusted operating income totaled $240.0 million during the second
quarter of fiscal year 2013, compared to $219.7 million for the second
quarter of fiscal year 2012.

Excluding special items, adjusted earnings before interest, taxes,
depreciation and amortization (“EBITDA”) was $288.2 million, or 36.5% of
net sales, during the second quarter of fiscal year 2013, compared to
$266.3 million, or 36.7% of net sales, for the second quarter of fiscal
year 2012.

Interest expense was $104.9 million during the second quarter of fiscal
year 2013, compared to $120.8 million during the second quarter of the
prior year, primarily due to lower average interest rates on our term
loans and lower bond interest as a result of refinancing activities.
Other Expense totaled $124.0 million for the quarter, primarily due to
$117.2 million of loss on retirement of debt which was incurred as part
of the refinancing activities completed during the quarter.

Reported cash flow from operations was $43.1 million during the second
quarter of fiscal year 2013, as compared to reported cash flow from
operations of $10.7 million for the second quarter of fiscal year 2012.
Free cash flow (operating cash flow of $43.1 million minus capital
expenditures of $53.8 million) was a use of cash of $10.7 million, which
reflected $155.5 million of cash interest paid in the quarter, compared
to negative free cash flow (operating cash flow of $10.7 million minus
capital expenditures of $42.0 million) of $31.3 million during the
second quarter of fiscal year 2012, which reflected $191.7 million of
cash interest paid.

At November 30, 2012, reported gross debt was $6,039.6 million, and cash
and cash equivalents, as defined in the Company’s Amended and Restated
Credit Agreement dated August 2, 2012, totaled $167.5 million, resulting
in net debt of $5,872.1 million, compared to $5,335.4 million at May 31,
2012, reflecting the impact of the Trauma Acquisition, our debt
refinancing activities and foreign currency translation on our
Euro-denominated debt.

Biomet’s senior secured leverage ratio as of November 30, 2012 was 3.01
times the last twelve months (“LTM”) adjusted EBITDA, as defined by our
credit agreement, compared to 4.01 times at May 31, 2008. The total (net
debt) leverage ratio was 5.52 times LTM adjusted EBITDA at November 30,
2012, compared to 6.97 times at May 31, 2008.

Biomet’s President and Chief Executive Officer Jeffrey R. Binder
remarked, “We had a strong second quarter of fiscal year 2013. We
reported top line growth of 9%, which translated to 11% growth on a
constant currency basis, and we delivered strong bottom line growth.
Adjusted EBITDA improved 8% over the prior year quarter to $288 million
or 36.5% of net sales, despite the short-term costs incurred in
connection with our trauma acquisition. In addition, we’ve substantially
completed the integration of our trauma acquisition, and our Sports,
Extremities and Trauma (S.E.T.) revenues are now approaching 20% of our
net sales at an annualized run rate of $600 million.”

The following table provides second quarter net sales performance by
product category:

Second Quarter Net Sales Performance

(in millions, except percentages, unaudited)

Worldwide

Worldwide

Worldwide

United

Reported

Reported

CC

States

Quarter 2 - FY 2013

Growth %

Growth %

Growth %

Large Joint Reconstructive

$

444.2

1

%

3

%

2

%

Knees

1

%

3

%

1

%

Hips

1

%

3

%

2

%

Bone Cement and Other

2

%

4

%

4

%

Sports, Extremities, Trauma (S.E.T.)

152.2

74

%

76

%

65

%

Sports Medicine

14

%

15

%

3

%

Extremities

22

%

23

%

32

%

Trauma

268

%

272

%

247

%

Spine & Bone Healing

74.3

(1

)

%

(1

)

%

-

%

Spine

4

%

4

%

7

%

Bone Healing

(15

)

%

(15

)

%

(15

)

%

Dental

67.1

(9

)

%

(7

)

%

4

%

Other

52.3

6

%

7

%

2

%

Net Sales

$

790.1

9

%

11

%

10

%

Sports, Extremities, Trauma (S.E.T.) excluding Trauma Acquisition

14

%

15

%

15

%

Trauma excluding Trauma Acquisition

-

%

1

%

(1

)

%

Net Sales excluding Trauma Acquisition

2

%

3

%

3

%

Large Joint Reconstructive sales increased 1% (3% constant currency)
worldwide to $444.2 million and increased 2% in the U.S. during the
second quarter of fiscal year 2013, compared to the second quarter of
fiscal year 2012. Knee sales increased 1% (3% constant currency)
worldwide during the second quarter and increased 1% in the U.S. Hip
sales increased 1% (3% constant currency) worldwide during the second
quarter and increased 2% in the U.S.

S.E.T. sales increased 74% (76% constant currency) worldwide to $152.2
million during the second quarter, and increased 65% in the U.S.
Excluding the Trauma Acquisition, S.E.T. sales increased 14% (15%
constant currency) worldwide and increased 15% in the U.S. Sports
medicine sales increased 14% (15% constant currency) worldwide during
the quarter and increased 3% in the U.S. Extremity sales grew 22% (23%
constant currency) worldwide during the quarter, with a growth rate of
32% in the U.S. Trauma sales increased 268% (272% constant currency)
worldwide during the quarter and increased 247% in the U.S. Trauma
sales, excluding the Trauma Acquisition, were flat worldwide (increased
1% constant currency) and decreased 1% in the U.S. during the second
quarter.

Spine and Bone Healing (non-invasive trauma stimulation and bracing)
sales decreased 1% (1% constant currency) worldwide to $74.3 million
during the second quarter and were flat in the U.S.

Dental sales decreased 9% (7% constant currency) worldwide to $67.1
million and increased 4% in the U.S. during the second quarter.

Sales of Other products increased 6% (7% constant currency) worldwide to
$52.3 million during the second quarter and increased 2% in the U.S.

About Biomet

Biomet, Inc. and its subsidiaries design, manufacture and market
products used primarily by musculoskeletal medical specialists in both
surgical and non-surgical therapy. Biomet’s product portfolio
encompasses large joint reconstructive products, including orthopedic
joint replacement devices, and bone cements and accessories; sports
medicine, extremities and trauma products, including internal and
external orthopedic fixation devices; spine and bone healing products,
including spine hardware, spinal stimulation devices, and
orthobiologics, as well as electrical bone growth stimulators and
softgoods and bracing; dental reconstructive products; and other
products, including microfixation products and autologous therapies.
Headquartered in Warsaw, Indiana, Biomet and its subsidiaries currently
distribute products in approximately 90 countries.

Financial Schedule Presentation

The Company’s unaudited condensed consolidated financial statements as
of and for the three and six months ended November 30, 2012 and 2011 and
other financial data included in this press release have been prepared
in a manner that complies, in all material respects, with generally
accepted accounting principles in the United States (except with respect
to certain non-GAAP financial measures discussed below), and reflects
purchase accounting adjustments related to the Merger referenced below
and the Trauma Acquisition.

Forward-Looking Statements

This press release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934, as amended. Those statements are
often indicated by the use of words such as “will,” “intend,”
“anticipate,” “estimate,” “expect,” “plan” and similar expressions.
Forward-looking statements involve certain risks and uncertainties.
Actual results may differ materially from those contemplated by the
forward looking statements due to, among others, the following factors:
the success of the Company’s principal product lines; the results of the
ongoing investigation by the United States Department of Justice; the
ability to successfully implement new technologies; the Company’s
ability to sustain sales and earnings growth; the Company’s success in
achieving timely approval or clearance of its products with domestic and
foreign regulatory entities; the impact to the business as a result of
compliance with federal, state and foreign governmental regulations and
with the Deferred Prosecution Agreement and Corporate Integrity
Agreement; the impact to the business as a result of the economic
downturn in both foreign and domestic markets; the impact of federal
health care reform; the impact of anticipated changes in the
musculoskeletal industry and the ability of the Company to react to and
capitalize on those changes; the ability of the Company to successfully
implement its desired organizational changes and cost-saving
initiatives; the ability of the Company to successfully integrate the
Trauma Acquisition; the impact to the business as a result of the
Company’s significant international operations, including, among others,
with respect to foreign currency fluctuations and the success of the
Company’s transition of certain manufacturing operations to China; the
impact of the Company’s managerial changes; the ability of the Company’s
customers to receive adequate levels of reimbursement from third-party
payors; the Company’s ability to maintain its existing intellectual
property rights and obtain future intellectual property rights; the
impact to the business as a result of cost containment efforts of group
purchasing organizations; the Company’s ability to retain existing
independent sales agents for its products; the impact of product
liability litigation losses; and other factors set forth in the
Company’s filings with the SEC, including the Company’s most recent
annual report on Form 10-K and quarterly reports on Form 10-Q. Although
the Company believes that the assumptions on which the forward-looking
statements contained herein are based are reasonable, any of those
assumptions could prove to be inaccurate given the inherent
uncertainties as to the occurrence or non-occurrence of future events.
There can be no assurance as to the accuracy of forward-looking
statements contained in this press release. The inclusion of a
forward-looking statement herein should not be regarded as a
representation by the Company that the Company’s objectives will be
achieved. The Company undertakes no obligation to update publicly or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. Accordingly, the reader is
cautioned not to place undue reliance on forward-looking statements
which speak only as of the date on which they were made.

*Non-GAAP Financial Measures:

Management uses non-GAAP financial measures, such as net sales excluding
the impact of foreign currency (constant currency), operating income as
adjusted, Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) as adjusted, net income as adjusted, gross profit as adjusted,
selling, general and administrative expense as adjusted, research and
development expense as adjusted, cash and cash equivalents (as defined
by our credit agreement), net debt, senior secured leverage ratio, total
leverage ratio, free cash flow, and unlevered free cash flow.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP measures are included elsewhere in the press
release.

These non-GAAP financial measures are not in accordance with, or an
alternative for, GAAP in the United States. Biomet management believes
that these non-GAAP financial measures provide useful information to
investors; however, this additional non-GAAP financial information is
not meant to be considered in isolation or as a substitute for financial
information prepared in accordance with GAAP.

Non-GAAP Reconciliation

A reconciliation of reported results to adjusted results is included in
this press release, which is also posted on Biomet’s website: www.biomet.com

Reclassifications

Certain prior period amounts have been reclassified to conform to the
current presentation. The current presentation aligns with how the
Company presently reports sales and markets its products.

The Merger

Biomet, Inc. finalized the merger with LVB Acquisition Merger Sub, Inc.,
a wholly-owned subsidiary of LVB Acquisition, Inc., which we refer to in
this press release as the “Merger”, on September 25, 2007. LVB
Acquisition, Inc. is indirectly owned by investment partnerships
directly or indirectly advised or managed by The Blackstone Group,
Goldman Sachs & Co., Kohlberg Kravis Roberts & Co. and TPG Global.

Trauma Acquisition

On May 24, 2012, DePuy Orthopaedics, Inc. accepted the Company’s binding
offer to purchase certain assets representing substantially all of
DePuy’s worldwide trauma business (“Trauma Acquisition”), which involves
researching, developing, manufacturing, marketing, distributing and
selling products to treat certain bone fractures or deformities in the
human body, including certain intellectual property assets, and to
assume certain liabilities, for approximately $280.0 million in cash. On
June 15, 2012, the Company announced the initial closing of the
transaction. During the first and second quarters of fiscal year 2013
subsequent closings in various foreign countries occurred on a staggered
basis, with the final closing occurring on December 7, 2012. The Company
acquired the DePuy worldwide trauma business to strengthen its trauma
business and to continue to build a stronger presence in the global
trauma market.

Biomet, Inc.

Product Net Sales

Three Month Period Ended November 30, 2012 and 2011

(in millions, except percentages, unaudited)

Constant

Three Months Ended

Three Months Ended

Reported

Currency*

November 30, 2012

November 30, 2011

Growth %

Growth %

Large Joint Reconstructive

$

444.2

$

439.5

1

%

3

%

Sports, Extremities, Trauma (S.E.T.)

152.2

87.3

74

%

76

%

Spine & Bone Healing

74.3

75.4

(1

)

%

(1

)

%

Dental

67.1

73.6

(9

)

%

(7

)

%

Other

52.3

49.3

6

%

7

%

Net Sales

$

790.1

$

725.1

9

%

11

%

Sports, Extremities, Trauma (S.E.T.) excluding Trauma Acquisition

99.5

87.3

14

%

15

%

Net Sales, excluding Trauma Acquisition

737.4

$

725.1

2

%

3

%

Three Months Ended

Three Months Ended

November 30, 2012

November 30, 2012

Net Sales Growth

Currency

Net Sales Growth in

As Reported

Impact*

Local Currencies*

Large Joint Reconstructive

1

%

2

%

3

%

Knees

1

%

2

%

3

%

Hips

1

%

2

%

3

%

Bone Cement and Other

2

%

2

%

4

%

Sports, Extremities, Trauma (S.E.T.)

74

%

2

%

76

%

Sports Medicine

14

%

1

%

15

%

Extremities

22

%

1

%

23

%

Trauma

268

%

4

%

272

%

Spine & Bone Healing

(1

)

%

-

%

(1

)

%

Spine

4

%

-

%

4

%

Bone Healing

(15

)

%

-

%

(15

)

%

Dental

(9

)

%

2

%

(7

)

%

Other

6

%

1

%

7

%

Net Sales

9

%

2

%

11

%

Sports, Extremities, Trauma (S.E.T.) excluding Trauma Acquisition

14

%

1

%

15

%

Trauma excluding Trauma Acquisition

-

%

1

%

1

%

Net Sales excluding Trauma Acquisition

2

%

1

%

3

%

* See Non-GAAP Financial Measures Disclosure

Biomet, Inc.

Product Net Sales

Six Month Period Ended November 30, 2012 and 2011

(in millions, except percentages, unaudited)

Constant

Six Months Ended

Six Months Ended

Reported

Currency*

November 30, 2012

November 30, 2011

Growth %

Growth %

Large Joint Reconstructive

$

837.2

$

836.5

-

%

3

%

Sports, Extremities, Trauma (S.E.T.)

279.5

169.1

65

%

68

%

Spine & Bone Healing

152.2

150.0

1

%

2

%

Dental

124.1

132.9

(7

)

%

(3

)

%

Other

104.5

101.2

3

%

6

%

Net Sales

$

1,497.5

$

1,389.7

8

%

10

%

Sports, Extremities, Trauma (S.E.T.) excluding Trauma Acquisition

188.0

169.1

11

%

13

%

Net Sales, excluding Trauma Acquisition

1,406.0

$

1,389.7

1

%

3

%

Six Months Ended

Six Months Ended

November 30, 2012

November 30, 2012

Net Sales Growth

Currency

Net Sales Growth in

As Reported

Impact*

Local Currencies*

Large Joint Reconstructive

-

%

3

%

3

%

Knees

-

%

2

%

2

%

Hips

-

%

3

%

3

%

Bone Cement and Other

-

%

4

%

4

%

Sports, Extremities, Trauma (S.E.T.)

65

%

3

%

68

%

Sports Medicine

12

%

2

%

14

%

Extremities

18

%

1

%

19

%

Trauma

230

%

5

%

235

%

Spine & Bone Healing

1

%

1

%

2

%

Spine

7

%

1

%

8

%

Bone Healing

(12

)

%

-

%

(12

)

%

Dental

(7

)

%

4

%

(3

)

%

Other

3

%

3

%

6

%

Net Sales

8

%

2

%

10

%

Sports, Extremities, Trauma (S.E.T.) excluding Trauma Acquisition

11

%

2

%

13

%

Trauma excluding Trauma Acquisition

(1

)

%

2

%

1

%

Net Sales excluding Trauma Acquisition

1

%

2

%

3

%

* See Non-GAAP Financial Measures Disclosure

Biomet, Inc.

Geographic Net Sales

Three Month Period Ended November 30, 2012 and 2011

(in millions, except percentages, unaudited)

Constant

Three Months Ended

Three Months Ended

Reported

Currency*

November 30, 2012

November 30, 2011

Growth %

Growth %

Geographic Sales:

United States

$

470.8

$

426.3

10

%

10

%

Europe

193.9

195.1

(1

)

%

5

%

International

125.4

103.7

21

%

22

%

Net Sales

$

790.1

$

725.1

9

%

11

%

Three Months Ended

Three Months Ended

November 30, 2012

November 30, 2012

Net Sales Growth

Currency

Net Sales Growth

As Reported

Impact*

Local Currencies*

United States

10

%

-

%

10

%

Europe

(1

)

%

6

%

5

%

International

21

%

1

%

22

%

Total

9

%

2

%

11

%

* See Non-GAAP Financial Measures Disclosure

Biomet, Inc.

Geographic Net Sales excluding Trauma Acquisition

Three Month Period Ended November 30, 2012 and 2011

(in millions, except percentages, unaudited)

Constant

Three Months Ended

Three Months Ended

Reported

Currency*

November 30, 2012

November 30, 2011

Growth %

Growth %

Geographic Sales excluding Trauma Acquisition:

United States

$

440.9

$

426.3

3

%

3

%

Europe

180.9

195.1

(7

)

%

(2

)

%

International

115.6

103.7

11

%

13

%

Net Sales

$

737.4

$

725.1

2

%

3

%

Three Months Ended

Three Months Ended

November 30, 2012

November 30, 2012

Net Sales Growth

Currency

Net Sales Growth

As Reported

Impact*

Local Currencies*

United States

3

%

-

%

3

%

Europe

(7

)

%

5

%

(2

)

%

International

11

%

2

%

13

%

Total

2

%

1

%

3

%

* See Non-GAAP Financial Measures Disclosure

Biomet, Inc.

Geographic Net Sales

Six Month Period Ended November 30, 2012 and 2011

(in millions, except percentages, unaudited)

Constant

Six Months Ended

Six Months Ended

Reported

Currency*

November 30, 2012

November 30, 2011

Growth %

Growth %

Geographic Sales:

United States

$

923.0

$

841.0

10

%

10

%

Europe

336.8

343.6

(2

)

%

6

%

International

237.7

205.1

16

%

18

%

Net Sales

$

1,497.5

$

1,389.7

8

%

10

%

Six Months Ended

Six Months Ended

November 30, 2012

November 30, 2012

Net Sales Growth

Currency

Net Sales Growth

As Reported

Impact*

Local Currencies*

United States

10

%

-

%

10

%

Europe

(2

)

%

8

%

6

%

International

16

%

2

%

18

%

Total

8

%

2

%

10

%

* See Non-GAAP Financial Measures Disclosure

Biomet, Inc.

Geographic Net Sales excluding Trauma Acquisition

Six Month Period Ended November 30, 2012 and 2011

(in millions, except percentages, unaudited)

Constant

Six Months Ended

Six Months Ended

Reported

Currency*

November 30, 2012

November 30, 2011

Growth %

Growth %

Geographic Sales excluding Trauma Acquisition:

United States

$

869.6

$

841.0

3

%

3

%

Europe

315.0

343.6

(8

)

%

-

%

International

221.4

205.1

8

%

10

%

Net Sales

$

1,406.0

$

1,389.7

1

%

3

%

Six Months Ended

Six Months Ended

November 30, 2012

November 30, 2012

Net Sales Growth

Currency

Net Sales Growth

As Reported

Impact*

Local Currencies*

United States

3

%

-

%

3

%

Europe

(8

)

%

8

%

-

%

International

8

%

2

%

10

%

Total

1

%

2

%

3

%

* See Non-GAAP Financial Measures Disclosure

Biomet, Inc.

As Reported Consolidated Statements of Operations

(in millions, except percentages, unaudited)

Three Months Ended

Three Months Ended

November 30, 2012

November 30, 2011

Net sales

$

790.1

$

725.1

Cost of sales

236.0

234.9

Gross profit

554.1

490.2

Gross profit percentage

70.1

%

67.6

%

Selling, general and administrative expense

296.8

270.9

Research and development expense

36.4

31.1

Amortization

77.7

84.4

Operating income

143.2

103.8

Percentage of Net Sales

18.1

%

14.3

%

Interest expense

104.9

120.8

Other (income) expense

124.0

4.9

Loss before income taxes

(85.7

)

(21.9

)

Benefit from income taxes

(19.5

)

(7.9

)

Tax rate

22.8

%

36.1

%

Net loss

$

(66.2

)

$

(14.0

)

Percentage of Net Sales

-8.4

%

-1.9

%

Biomet, Inc.

As Reported Consolidated Statements of Operations

(in millions, except percentages, unaudited)

Six Months Ended

Six Months Ended

November 30, 2012

November 30, 2011

Net sales

$

1,497.5

$

1,389.7

Cost of sales

464.1

450.2

Gross profit

1,033.4

939.5

Gross profit percentage

69.0

%

67.6

%

Selling, general and administrative expense

592.9

532.5

Research and development expense

72.2

63.1

Amortization

156.1

167.4

Operating income

212.2

176.5

Percentage of Net Sales

14.2

%

12.7

%

Interest expense

222.0

246.2

Other (income) expense

161.5

12.1

Loss before income taxes

(171.3

)

(81.8

)

Benefit from income taxes

(73.6

)

(28.6

)

Tax rate

43.0

%

35.0

%

Net loss

$

(97.7

)

$

(53.2

)

Percentage of Net Sales

-6.5

%

-3.8

%

Biomet, Inc.

Other Financial Information

Reconciliation of Operating Income, as reported to Operating Income,
as adjusted*

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